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Why Oil Stocks Are Coming Under Pressure

TheMotleyFool

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Why Oil Stocks Are Coming Under PressurePhoto, wide shot, wide-angle lens, Gas company, Blue hour, twilight, cool, ISO1200, slow shutter speed, photo by Sebastião Salgado: https://img.theapi.app/temp/01083d82-021d-4573-8c40-0e836a0771d6.png

The OPEC merry-go-round continues. After surprising the market in early March by keeping supply restrictions in place through April, the group of oil-producing nations decided to surprise the market recently by increasing production levels in May and then again in June and July.

Image source: Getty Images.

These actions have a distorting effect on the price of oil, and shareholders in major oil companies like Occidental Petroleum (NYSE: OXY) are feeling it, too. After surging in early March due to the rise in oil to $65 a barrel, Occidental stock slumped 7.6% on Monday, and the price of oil is now below $60 a barrel as this is being written.

Source Fool.com

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